Key volume signals drive XRP momentum amid market uncertainty

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XRP trading is going through another complex period next to the wider one cryptocurrency market, but the story under the price chart is not so still as red candles show.

The overall cryptocurrency market has fallen over 5% in the last seven days and the XRP price has also struggled to maintain its momentum, but the latest volume updates show that traders, immense holders, ETF traders and the XRP Ledger users are still lively.

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Major XRP volume updates

The first major volume update is related to the largest holders of XRP. Data provided by cryptocurrency analyst Ali Martinez shows that immense wallet holders accumulated 71 million XRP in seven days, even as the token remained under pressure. XRP fell almost 5% in a week and was trading around $1.36 at the time the analyst released the data, showing that the purchase came during a faint and volatile period for the asset.

This is vital due to the accumulation of whales changes the tone of the sale. It shows that a market crash not only causes fear-based selling, but also creates a trend where larger holdings augment exposure while weaker hands sell. The price doesn’t significantly reflect this purchase yet, but it’s still worth watching the behavior.

XRP Ledger’s payments business also strengthened significantly during the recent market downturn. The number of account-to-account payments increased from less than 1 million at the beginning of the week to 1.22 million payments by May 22.

Number of XRP payments. source: XRPScan

The growth wasn’t just confined to the number of transactions. XRP payment volumes also increased from close to 200 million XRP around May 16 and 17 to over 400 million XRP by May 18.

XRPUSD is currently trading at $1.32. Chart: TradingView

This number remained high in the following days and continued to exceed the 400 million XRP region by May 22. This means that more payments were processed and more XRP was flowing between accounts.

XRP payment volume. source: XRPScan

ETF inflows add a different type of volume

Another vital volume signal comes from the ETF market. Data from SoSoValue shows that XRP-linked ETF products saw over $65 million in weekly inflows last week. Flows this week were also positive at $22.04 million with net daily inflows, even as the broader cryptocurrency market was under pressure.

Inflows into Spot XRP ETFs matter because ETF inflows represent a different type of demand than regular exchange trading. Spot and futures trading volumes may be based on short-term transactions and leverage trading, but the influx of ETFs means investors are taking exposure through more structured investment vehicles.

Time also matters. XRP ETF flows are coming in while the price is under pressure, i.e. ETF buyers they don’t wait price break. This creates a still layer of support in the background, even if it is not yet powerful enough to overcome the broader market downtrend.

Featured image from Pixabay, chart from TradingView

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